The two challengers for the Conservative Party leadership have been setting out their stalls in detail for the first time, as the contest enters its final phase.

On Monday the mini-manifestos of Ken Clarke and Iain Duncan Smith were sent out alongside ballot papers to the 300,000 party members, who have three weeks to make their choice.

We cannot occupy Downing Street until we've occupied every street in every city of this country

Iain Duncan Smith

At the same time the two men took to the road to publicise their proposals, with Mr Clarke pledging to set up special policy commissions on key areas including health and education.

Mr Duncan Smith put tax reductions, creating a "welfare society" and uniting the Tories on Europe at the centre of his appeal.

He pledged he would "lead from the front" in opposing the Nice Treaty in the House of Commons, in contrast to Mr Clarke who says he will abstain in the vote later this year.

'Clear leadership'

"That is for Ken to decide," Mr Duncan Smith told his audience at a Conservative private members' club in Bradford.

"My view is clear - when the Nice vote comes, if I am leader I will lead from the front.

Mr Clarke wants to consult on detailed policy

"We will oppose the Nice Treaty as we have been doing.

"We will continue the policy that we set so there will be clear leadership from the front in my case."

Mr Duncan Smith insisted he wanted to "settle the idea of Europe as the divisive issue and make it a unifying issue".

His manifesto pledges more democracy to local institutions and local government and opposition to scrapping the pound.

He would work towards forging closer links with the United States - including support for the controversial missile defence plan.

After the mini-manifesto launch Mr Duncan Smith visited the Manningham area of Bradford, the scene of riots in July.

Shared values

While chatting to locals and seeing for himself the damage caused to properties and businesses, he said: "Conservatives don't represent constituencies in areas like this any more and we have to find out why because there are people here who share our values."

Mr Clarke, setting out his pitch earlier on Monday, appealed to party members not to focus on Europe when deciding who to vote for.

The Conservative Party has serious work to do... producing credible policies on the big social issues of our day

Ken Clarke

The former cabinet minister told a London news conference he would consult Tory MPs, grassroots members and those outside the party before formulating detailed policy proposals.

Those "policy commissions" would cover the environment, transport, government and the constitution, health and education.

Mr Clarke said: "The Conservative Party has serious work to do and that is the work which our electorate demands of us, producing modern, worked-through, credible policy on the big social issues of our day."

Blunt message

And he had a characteristically blunt message for any of the rightwingers who are said to be considering leaving the party if he becomes leader.

"I think the Conservative Party has had quite enough of people throwing their toys out of the pram if they feel at the moment they are not in line with the main view of the party...

"Anyone on either wing of the party who is going to say they are going to leave the party if they do not like the leader who's elected is free to go."

After a weekend that saw outgoing Tory leader William Hague endorse Mr Duncan Smith, Mr Clarke's campaign has been bolstered with the backing of 60 business leaders in a letter to the Financial Times and by an endorsement from Conservative vice-chairman Steve Norris.